US stocks were mixed on Tuesday morning after US public health agencies ordered the suspension of Johnson & Johnson’s single-shot COVID vaccine for “extreme caution” due to problems. about blood clotting is extremely rare.
The news comes as new cases of coronavirus infections are on the rise in the US as summer comes as the vaccine rollout accelerates with the help of Johnson & Johnson products with few logistical challenges. than other vaccines must be stored at super-cold temperatures.
Securities benchmark trading like?
Dow Jones industrial average
was trading 160 points lower at about 33,588 points, down 0.5%.
S&P 500 index
increased by less than one point to reach 4,128, 0.1% lower.
Nasdaq Composite Index
increased 64 points, or 0.5%, to 13,921.
In Monday, Dow fell 55.20 points, to close at 33,745.40, down 0.2%; The S&P 500 dropped less than one point to end at 4,127.99; while the Nasdaq Composite fell 50.19 points, to close at 13,850.00, losing 0.4%.
What drives the market?
Tech stocks are rising but broader markets wobbled early Tuesday after two of America’s top federal public health agencies, the Food and Drug Administration and the Control Center and Disease Prevention calls for immediate pause in the use of Johnson & Johnson’s
The COVID-19 vaccine, after six recipients in the US developed a rare disorder involving a blood clot within six to 13 days after being vaccinated.
This news has a relatively modest impact on investment moods on Wall Street, but could be a reminder of some of the challenges in reopening the economy from the worst pandemic in over a century. by.
Stephen Innes, global strategist at Axi, wrote: “Fortunately, the US vaccination rollout is well underway, so the downside impact on both US oil and stockpiles will be quite limit”. He added that with the stock market close to record, it is very sensitive to negative headlines.
So far, nearly 7 million Americans have received J&J injections, and about 9 million more have been moved to states, CDC data shows. Scientists from the FDA and CDC will jointly investigate possible links between the vaccine and the coagulation disorder and determine whether use should be continued or restricted.
J&J injections, which showed 66.1% efficacy in preventing moderate to severe illness, have been considered a game changer for Americans to get vaccinated quickly.
The vaccine report comes as the United States is facing a new rise in COVID cases, with reports of 70,000 new coronavirus infections every day, according to data from Johns Hopkins University. That was even after hitting a record 4.6 million vaccines for a day on Sunday.
The economic recovery is closely linked with Americans getting vaccinated and returning to work and children returning to school.
President of the Federal Reserve Bank of Vietnam. Louis James Bullard said on Monday that although it is too early to talk about the central bank’s re-dials, he says vaccinating 75% or 80% of the population may signal that it is time to cut down on fruit purchases. Fed votes.
“When you started to vaccinate 75%, vaccinate 80% and the CDC started giving more hopeful messages that we are getting better at controlling this issue and start to loosen some of their guidelines, then I think the entire economy will gain confidence from it, Bullard said in an interview with Bloomberg TV.
While, a consumer price report higher than estimated, rising for the fourth consecutive month for 3 months, with inflation hitting its highest level in 2 and a half years.
The inflation rate for the past year soared to 2.6% from the previous month’s 1.7%, marking the highest level since fall 2018.
The report highlights new emerging pressures on the economy as the United States recovers from the coronavirus pandemic. Economists polled by Dow Jones predict monthly gains of 0.5% and 2.5% year-on-year.
Fed officials have insisted they are willing to keep interest rates close to 0% even if inflation starts to rise as policymakers think it will be only temporary. However, market participants have expressed some skepticism about the central bank’s inflation prospects.
The session will also see a parade of Fed speakers including Philadelphia Fed President Patrick Harker, who will speak on the economic outlook to the Delaware State Chamber of Commerce at noon, Fed President Richmond Thomas Barkin will speak before the Ohio Valley’s Economic Roundtable at the same time.
Market participants are also analyzing data coming out of China after the country’s exports soared in March, suggesting that COVID’s grip on the country is likely to continue to loosen. Data show imports grew 38.1% MoM in dollar terms, beating analysts’ consensus estimates, while exports rose 30.6% during the period, low. than expected but still strong.
Which companies to focus on?
Shares of J&J fell about 3% in pre-market trading after the FDA and CDC called for an immediate halt on the use of the COVID-19 vaccine on Tuesday, “be very cautious.”
Investors may also be looking at a Singapore-based news and inflation report Grab Holdings Inc. upcoming public through a merger with a special purpose acquisition company Altimeter Growth Corp. AGC. Altimeter shares are up more than 7% in the currency market.
How are other assets performing?
ICE US Dollar Index DXYA monetary measure against a basket of six major players, was down 0.1 percent at 92.01.
US crude oil
up 62 cents, or 1 percent, to trade at $ 60.30 a barrel on the New York Mercantile Exchange.
The yield on 10-year Treasury bonds TMUBMUSD10Y decreased by 0.3 basis points to 1.67% following the CPI report. Bond prices move inversely with yields.
Gold futures contracts trade higher, with June contracts
$ 10.20, or 0.6%, higher than $ 1,742.90 / ounce on Comex.